The recent antics of the Senate Democrats add to the previous anti-Trump actions that seemed rather pointless and might be more than a bit self-destructive. It is of course not just them. As noted in our Jan. 23, “Kool-Aid crisis” in America post, the degree of commitment to their own agenda and philosophy by each side of the U.S. political divide leaves it less than possible to achieve any real synergistic dialog and constructive result. Years have turned into over a decade of substandard leadership in the United States on the back of aggressive and highly divergent views of America’s role…and each side is dead sure it’s right and the other side has nothing to offer.
Anyone who needs us to inform them there is an acrimonious partisan divide in America that has reached crisis proportions has likely been in a coma. And when we say America, we actually mean all of the developed economies. They have all succumbed to the siren call of the highly partisan political divide that has polarized a significant portion of their populations.
We find ourselves in a very different position than eight years ago when President Obama was about to take office. In January of 2009, the world was in the depths of the worst financial crisis since the Great Depression. Financial institutions across the globe were on the brink of collapse.
President-elect Donald Trump has recently questioned President Barack Obama's finger pointing at the Russians for election-related cyberattacks; and the current media and pundit frenzy alleging a Russian cyber-strike targeting Secretary Hillary Clinton in order to assure a Trump presidency. President-elect Trump plans to press U.S. intelligence agencies to defend their conclusions, stating...
While a week ago Fed Chair Yellen and her cohorts put a nominally stronger spin into the FOMC statement and projections as well as her press conference discussion of the degree to which the U.S. economy is firming a bit further, our sense is that underneath the surface they are dreading the need to revert back to a much more aggressive view of the upside U.S. economic potential. That is in part because they were so wrong in projecting all of the higher inflation and need for higher rates almost exactly one year ago.
In the context of how aggressively trends across all asset classes have progressed since Donald Trump’s U.S. Presidential election victory, it might seem like needless hindsight to revert back to a political assessment. Yet, there are so many interesting aspects of the U.S. election campaign and major developments in Europe as well that this is actually worth an extensive review. We begin with one of the more interesting post mortems on the Hillary Clinton loss.
The Trumpian Fox has entered the Populist Henhouse, not so much by stealth but as a result of Middle America's misinterpretation of what will make America great again. Not having voted for either establishment party's candidate, I write in amazed, almost amused bewilderment at what American voters have done to themselves.
As we have predicted for some time, central bankers are doubling down on the madness that has failed to achieve economic lift-off. It is no surprise to us that easy money has not stimulated growth. There was never any reason why it should. It reminds us of trying to force hay into the wrong end of an elephant.
It's a fine time for the equities markets when there's nothing but more stimulus and lower rates every 24-hour news cycle. The Dow is well above 18,000, and the S&P 500 is sitting at nosebleed levels at 25x earnings. Meanwhile, deeper insight on alternative investments is fleeting.